HAMMERSMITH MARKETING LTD

A Bahamas Registered Corporation .... Specializing in grains and protein meals for the feed industry in Africa, Asia, the Mediterranean and the Middle East. Consulting on grain purchases, contracts, disputes, arbitration and mediation.

This week was another week of higher prices for both futures and cash markets --- corn was up by about USD 9 m/t with soybeans up by just over USD 3 m/t and soymeal up by about USD 6 m/t --- wheat was also up with winter wheat up by close to USD 9 m/t and spring wheat up by just under USD 7 m/t.

Much of the increase in both corn and wheat was related to US weather --- rain, rain, rain and more rain. Seems that the corn and to some degree soybeans just can get planted while the rain is not all that good for finishing off the winter wheat crop.

Looking at the US weather, the corn belt looks to be in line for more rain for at least another week and farmers who have corn to sell are certainly not selling as higher prices just look too good to them.

Certainly, the world is still going to have mounds of corn but if the rain continues in the US and the farmers switch to later planting soybeans then, at least for US corn, you can expect some higher corn prices.

There was some talk this week that corn farmers may not switch to soybeans due to never ending soybean trade problems --- corn, with its ethanol use, does look to some to be a better alternative to soybeans --- even with late planting.

On the wheat side of things, all the rain is expected to be reducing the winter wheat crop yield potential and could be lowering overall winter wheat quality.

So, the more it rains, the higher prices are going to go – at least in the short term until the planting can catch up and the wheat fields dry out.

Corn prices were up again on the week and this has certainly helped to move both DDGS and corn gluten meal prices higher. If you look out a few weeks at corn prices it doesn't look like there will be much reason for prices to move lower.

CGM prices out in late August/September are at least USD 30 m/t higher than what has been seen for July export business --- just too much strength in corn prices these days.

There was also a blurb in the news this week about container prices moving higher – not so much to Asia (where freight is low) but certainly to Mid-East and Mediterranean destinations. The story did suggest USD 8 to 10 m/t, but this does seem like a bit too much of a price jump.

It is reported that the US Grains Council is having a workshop on DDGS, corn and sorghum for Europe and the Middle East/Africa region in Athens in mid-June. The workshop is expected to cover much about sourcing and animal nutrition. US shippers and nutrition experts are said to be on the workshop agenda. More information is available from the USGC regional office: tunis@usgrains.net

Container shipments, minimum 200 m/t

Australian MBM 45% protein

Australian MBM 50% protein

Australian Feathermeal, 80% protein

Australian Poultry Meal, pet food

USD 300/310 m/t CNF Asia

USD 330/340 m/t CNF Asia

USD 540/550 m/t CNF Asia

USD 690/710 m/t CNF Asia

USA Meat & Bone meal, 50% protein

USA Feathermeal, 80% protein

USA Poultry Meal, feed grade

USA Poultry Meal, pet food grade

USD 390/415 m/t CNF Asia

USD 325/335 to Indonesia

USD 480/520 m/t CNF Asia

USD 480/500 m/t CNF Asia

USD 720/740 m/t CNF Asia

Prices for meat and bone meal to major importing markets in Asia were steady again this week but trade reports suggest that there is a lot of meat and bone meal looking for a home which will weigh heavily on market prices.

Both Australia and New Zealand seem to have good supplies of MBM in the export market and major buyers in Indonesia are still out of the market – but they will be back.

In the US prices for both the domestic and export market were steady on the week with very good supplies of animal proteins keeping a lid on prices. Very tough to move prices higher when there is so much supply in the market – at least the buyers are happy.

SECTION 2 --- FISHMEAL COMMENTS AND PRICES: PERUVIAN

Due to mini-fishing bans, the catch this week dropped off quite a bit. The total catch landed is now up to about 825,000 m/t against the quota of 2.1 million m/t.

Not much to report in new sales this week – China seems to be full up for now and according to MSI Ceres comment there has still been about 40,000 m/t of fishmeal in containers waiting to be destuffed which could push the China fishmeal stock up close to 270,000 m/t.

Sales in Peru for this fishing season are said to be about 240,000 m/t – about half of what the full quota can provide in fishmeal. Buyers are just sitting back and waiting and sellers are not interested in being aggressive with prices. But there are some stories that China has purchased some fishmeal at prices USD 40 to 50 m/t lower than prices shown below. It has also been pointed out in the trade that much of China's interest for now is in lower grades of fishmeal as they are up to their eyeballs in prime and super prime.

The trade in Peru is waiting for the aqua season to get going in China so that some of the large stocks of fishmeal can be consumed and we can get back to booking a little more new business.

As a matter of info – one trade report shows this weeks Peru fishmeal prices about USD 100 m/t lower than the prices that I show below – the report also shows Chile fishmeal prices about USD 20 m/t lower. Hopefully by next week I will be able to confirm exactly where the prices stand.

PERU "INDICATION" FISHMEAL PRICES:

ALL PRICES SHOWN ARE IN CONTAINER, ON VESSEL, AT ORIGIN --- US DOLLARS

The information contained herein is based on sources that we believe to be reliable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy. All references to prices are subject to change without notice.Any opinions expressed herein are solely those of the author.As such, they may differ in material respects from those of, or expressed or published by or on behalf of, Hammersmith Marketing Ltd or its officers, directors, employees or affiliates